8 simple ways Aussies can save more than $13,000 in 2025

Australians can save over $13,000 in 2025 by adopting a few straightforward strategies, even as the cost of living continues to rise. CHOICE Editorial Director Mark Serrels has outlined eight practical and effective ways to achieve these savings, explaining that many require minimal effort or sacrifice. 'Saving money doesn't always have to be a grind. Sometimes it doesn't even require huge amounts of sacrifice!' Mr Serrels said. 'Something as simple as switching your health insurance or being more selective about your energy provider can save you hundreds – sometimes thousands – of dollars.'

Energy costs was one the biggest concerns for Australian households in 2024, with 79 per cent of Aussies worried about their ever-increasing electricity bills. Choosing energy-efficient appliances, turning off lights you're not using and making sure your home is well-insulated to reduce heating and cooling costs are well-known ways to manage your spending on electricity, Mr Serrals explained. However, several electronic appliances contribute massive amounts to a household's electricity bill when they're technically not in use. Wireless routers, printers, microwaves and televisions constantly use passive power and if switched off from the outlet can save a household up to $240 a year. 'Turning them off at the power point when they're not in use will ensure you're not wasting money,' explained Serrels.

CHOICE has advised Australians to consider switching health insurance providers. Although the two largest health funds, Medibank and Bupa, control over 50 per cent of the market, it’s often the smaller health funds where Australians can find greater savings. 'The same cover with a different insurer can be hundreds of dollars cheaper,' says CHOICE insurance expert Jodi Bird. 'Whether you have a gold, silver or bronze policy, it's likely that you'll be able to find a cheaper deal that will give you exactly the same amount of cover.' CHOICE found Aussies with gold policies could save up to $1,870 a year when moving to a cheaper policy, those with silver could save up to $1,170 a year and bronze policy holders could save up to $860 a year.

A Consumer Pulse survey in March 2024 found 79 per cent of Aussies were concerned about the cost of car insurance - the highest percentage since the survey was introduced in 2015. In every state and territory, the average premiums for the most expensive car insurance policies were more than double the cost of the cheapest options. CHOICE experts found the average premium of the cheapest polices that scored high enough to be recommended was still cheaper than the average of all other policies. In the Australian Capital Territory, drivers could save $330 by switching to a more affordable policy. In the Northern Territory, the saving was $275, while in New South Wales it was also $275. Motorists in South Australia could save $259, Victorians could save $244, residents of Western Australia could save $136, and Tasmanians could save $93 by changing their car insurer.

Another expensive household cost for Australians was their home insurance, with three-quarters of Aussies concerned with their bill, according to the September Consumer Pulse Survey. CHOICE advised shopping around for a cheaper alternative could save a household thousands. For houses insured between $600,000 and $700,000, residents in NSW could save a whopping $4,665, while those in the Northern Territory could save $3,250. Victorians could see a savings of $2,575, while those in the Australian Capital Territory could save $2,265. Meanwhile, households in Queensland, Tasmania, Western Australia and South Australia could save $1,870, $1,540, $1,230 and $1,010 respectively. 'Generally speaking, your premium goes down around 10 per cent for every $500 increase to your excess,' CHOICE Insurance Expert Daniel Graham said. 'Having an excess of between $1,000 and $1,500 seems to be where you can get the best savings. We've found there are diminishing benefits to increasing your excess much above that.'

'There are lots of opportunities to make savings in the way you do your laundry,' CHOICE Head of Reviews and Testing Matthew Steen. 'Washing full loads in cold water rather than small loads in warm, and switching to a top performing but cheaper detergent – and using less of it – will save you about $660 over the course of a year.' Mr Steen said Aussies could save nearly $450 a year just by reducing their reliance on a dryer and switching to line drying. Aussies can also save about $77 a year by cutting out the use of unnecessary fabric softener.

While the morning coffee, tea or lunchtime fizzy drink only costs a few dollars, the cost to quenching thirst can easily add up over the week. CHOICE compared the cost of making coffee at home, which included buying a machine, parts, maintenance and ingredients, it found it would be cheaper to make it at home than buying out. Two cups of coffee a day made at home would cost about $1,284 for an entire year, less than half -$3,504 - it would cost to buy the same amount at a cafe. That equals a savings of $2,200 just by making coffee at home. Similarly, you can save at least $420 by making sparkling water at home using a soda maker.

A mistake most Australians make is signing up for an energy company's cheap initial offer, but then staying on for the more expensive plan once the offer expires. CHOICE experts explained energy retailers love to lure Australians in with a cheap rate knowing that the customer will likely stick with them as the price increases. The exact amount of savings depends on a number of factors, however the average Aussie can save up to $350 when switching to a better energy plan.

While, buying all your items at the same shop saves time and is convenient it ends up costing more at the checkout. CHOICE revealed that Aussies saved between 20 and 40 per cent when splitting their shops between retailers including Coles, Woolworths, Aldi and The Reject Shop. 'It certainly takes more time and effort, but we recommend spreading your weekly shop across different supermarkets,' Mr Serrels said.

'We found we could save around $40 on a selected list of 19 items by choosing the best value product from one of four stores. We've found you can save up to 20 per cent on your groceries if you do a little more planning, and take advantage of the specials on offer. If you're lucky enough to have a Woolies, Coles and Aldi in a nearby shopping centre, it's worth being strategic in order to save a few dollars.' The average Australian household would save up to $1,861 on groceries a year, just by shopping around for the cheapest option.

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